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SECTION 4 CHAPTER 2
Innerwear Market
in India
AMONGST THE CORE APPAREL CATEGORIES, INNERWEAR APPEARS TO
BE A POTENTIAL GROWTH CATEGORY ACROSS ALL SEGMENTS. IN 2014
THE INDIAN INNERWEAR MARKET WAS WORTH `9,950 CRORE AND IS
ESTIMATED TO GROW AT 13 PERCENT TO REACH `59,540 CRORE BY
2023. IN THIS RESEARCH, AMIT GUGNANI, SENIOR VICE PRESIDENT,
FASHION - TEXTILE AND APPAREL AT TECHNOPAK ADVISORS, THROWS
LIGHT ON THE GROWTH OF INNERWEAR MARKET.
A
mong the core apparel categories, innerwear appears to be a potential growth
category across all segments. With rising incomes, higher discretionary spending,
greater number of working women and growing fashion consciousness, the
innerwear segment is expected to continue to progress. Currently, the Indian
innerwear market is worth `19,950 crore (2014) and is estimated to grow at 13
percent to reach `59,540 crore by 2023. The innerwear market has traditionally been largely
unorganised, although in the past few years, the organised innerwear segment has shown
promising growth in both men’s and women’s categories.
Until the pre-1970 era, innerwear was viewed as an essential ‘commodity’ with no focus from
any retailer. The market was highly fragmented and was dominated by local and unorganised
brands. Since the 1970s, governmental restrictions dissuaded foreign tie-ups, but many Indian
brands were launched successfully. Unorganised MBOs dominated the innerwear market until
the 1990s, after which there was an influx of Indian and foreign brands. Organised brands came
up and there was a gradual increase in the demand for them. Between 2000 and 2008, premium
international brands started foraying into the Indian market. Indian brands showcased new
designs and styles to woo the new age Indian women. The focus was mainly on the width of
the product range. Men’s and women’s innerwear began to be sold through a variety of retail
formats such as EBOs, LFS and departmental stores.
IMAGES YEARBOOK 2015 presented by snapdeal.com Volume XII No. 1 249


Although MBOs selling innerwear alone are still considered to be the Consumer
most significant retail format for this category, women are becoming Innerwear consumers can be segregated into four core groups on the
comfortable walking into EBOs to purchase innerwear. Organised basis of their attitude towards innerwear products and their buying
EBOs and departmental stores cater primarily to urban consumers behaviour. The first group comprises men and women employed
in major cities while, in the smaller cities, neighbourhood stores are in high-paying jobs, earning high disposable incomes, having high
preferred for purchase of innerwear. LFS , with shop-in-shop concept, aspirations, seeking only branded innerwear. The next group also
have carved a niche by showcasing the entire product range. They help consists of consumers with well-paying jobs, but these consumers
in differentiating the brand from key competitors. assess value along various parameters of which price is just one;
Since 2008, there has been greater focus within EBOs on assisting others are convenience of purchase, easy availability, style, quality,
customers with selecting the right styles and sizes through employing etc. Again, these consumers do not have any issue with paying a
trained staff. Online retailing is also gaining momentum, with premium premium for innerwear products of a particular brand as long as
brands pioneering. There is now greater emphasis on customer service the quality is assured. The third group includes consumers from
and experience; however, product depth is still an issue. This growth mostly tier -I, -II and -III cities having high aspirations and eager to
and change is primarily due to increased exposure, media presence, have a metro-like lifestyle. They are open to experimenting through
influx of both domestic and international westernwear brands, and the purchasing aspirational brands. The last group of consumers consists
increase in the number of working women. The growth of innerwear of men and women who have low disposable incomes but have big
category is primarily centered around urban India with 38 percent dreams and aspirations. They have cautious buying patterns and value
of the market spread across the top cities comprising metros, mini price over brands. For them comfort, price and quality are most crucial
metros, tier -I and -II cities. while purchasing innerwear.
The growth of innerwear category is primarily centered around

urban India with 38 percent of the market spread across the top cities
comprising metros, mini metros, tier -I and -II cities.

present in India. Largely unorganised, the women’s innerwear market
is at present dominated by many local brands. Women tend to exhibit
a strong comfort factor in buying lingerie from regular unorganised
local stores, predominantly due to price, but departmental stores are
also very popular as they provide range and product displays and also
have trial rooms. Exclusive brand stores are explored when looking
for depth in styles and variety in colours. Even though there is an
increase in the purchase frequency and average spends on innerwear,
this category is predominantly a ‘planned purchase’ or an ‘occasion-
based purchase’ category, especially among women, who tend to
purchase and even splurge on occasions as weddings, anniversaries,
holidays, etc. However, promotions and offers tend to induce impulse
purchases. Again, experimentation in terms of styles is most often
done when buying for special occasions; for daily wear, known
styles and brands are preferred. On the basis of product pricing, the
innerwear market is further divided into super-premium, premium,
medium, and economy segments. Due to increased awareness, the
increase in number of brands, and rising discretionary spending, all
segments have registered growth. Foreign brands have brought in
variety through international styles and fabrics. Indian women are
also willing to spend higher-than-before amounts on innerwear. This
has provided an exponential boost to premium and super-premium
innerwear brands. Midsegment brands have started extending their

product portfolios. In women’s innerwear, the mid-premium segment
62% makes up 52 percent of the market and is expected to grow the
fastest, at a CAGR of 22 percent over the next five years. Within the
women’s innerwear segment, there is potential in maternity wear
segment. Currently only select brands, mostly international ones, offer
multiple styles of maternity innerwear products. Most other brands
offer only one or two styles in this category.
Women’s innerwear market Men’s innerwear market

The women’s innerwear market, which is driven by valueadded The men’s innerwear market is pegged at `7,650 crore and is growing
innerwear products, contributes around 60 percent to the market. This at 9 percent. Even in this segment various domestic and international
market is worth `12,300 crore, and is growing at a promising CAGR of brands can be found. Various apparel brands and retailers have
15 percent. The growing number of working women and the increased extended their product portfolios to men’s innerwear segment as
share of westernwear in their wardrobe have propelled this growth. well to leverage its growth. Apparel players predominantly focusing
Further, with the increase in exposure, there is an increased demand on activewear, casualwear and even formalwear have launched
for better fits and quality alongside the demand for a wider range of dedicated sub-brands in men’s innerwear. Even, consumers largely
colours, styles, and accessories. prefer, due to their stronger association with, dedicated innerwear
Westernwear usually encompasses specialised innerwear, players. The various sub-categories of men’s innerwear available
which the branded players can provide, for the most part. Brand widely and in most brands include vests, briefs, boxers, basic t-shirts,
consciousness is no more restricted to external apparel. Among shorts, pyjamas, sleepwear and activewear. Consumers mostly
women’s innerwear brands, strong single brands emerge for bottoms purchase branded vests, briefs and boxers, which are the largest
and heritage innerwear brands are preferred for bras. category with offerings from most leading innerwear brands. Similar
Women are increasingly conscious about even the brands and styles to the segments in the women’s innerwear market, men’s innerwear
for their intimate wear. In fact, this changing preference is no longer can also be divided into super-premium, premium, medium, and
restricted to just the metros, but has spread to mini metros, tier -I, -II economy segments. Unlike women’s segment, however, within
and -III cities. This openness to indulge in branded lingerie has led to a men’s innerwear, the economy segment is the highest contributor
growth in the number of international and domestic innerwear brands at 55 percent. The mid-price segment contributes 36 percent, and

...it also emerges that products
are associated with varying
the premium and super premium segments together constitute 14
percent. It is expected that the premium and mid-price segments will activities packed in the day, viz.
grow fastest, and exponentially, in the next few years. This is largely
due to consumers becoming more informed. They seek high fashion
lounging at home; outdoor lifestyle
quotient along with comfort, hygiene, brand image and smart prices. activities, etc.
Youth residing in metros and mini metros engage mostly with
premium brands. The keenness to show off the brands, coupled their target customers and not switch brands. Whereas consumers
with a desire to look good, is a significantly strong attribute in the residing in tier -I, -II and -III cities are not necessarily fond of premium
choice of innerwear products and subcategories. A high fashion brands alone, they straddle all segments including the mass segment.
quotient within the product range helps increase the brand’s image Premium brands are still aspirational for these consumers. Price,
and engage consumers. This is usually achieved by incorporating a comfort and easy availability form the basis of any purchase for this
variety of colour, prints and designs. Most premium value brands consumer. Neither the brand nor its image has, as yet, a vital role in
add new products to their range of offerings at regular intervals. This the purchase decision.
way, consumers find something new in their chosen brand each time
they shop. Regular product innovation help these brands engage Brands and product portfolio
Most innerwear brands, across both men’s and women’s segments,
are gradually expanding their product portfolios. Across consumer
segments, it also emerges that products are associated with varying
activities packed in the day, viz. lounging at home; outdoor lifestyle
activities, etc. Activewear and sleepwear are perceived to be the
natural avenues for growth. A merchandise mix of innerwear with such
other product categories as activewear and sleepwear is currently not
being offered to Indian consumers. Products within activewear, such
as sports bras, running shorts and tops, track pants, jackets, gym
bottoms, socks, etc. are not widely available, although consumers’
demand is increasing. A limited range is available at intimate wear
stores as the focus there is on innerwear alone. Despite women
increasingly indulging in active lifestyle activities, most products tend
to get segmented under comfortwear. Women are aware that different
types of fitness activities require different attire. For casual fitness
activities such as walking and jogging, they are not very specific about
the attire. But for serious activities like gym and yoga, they prefer to
put on specific sportswear. This is explained by limited offerings in
the women’s activewear category. Even traditional sportswear brands
have limited offerings for women and the untapped opportunity can be
cashed in on by brands and retailers.
Foreign brands dominate this category - along with private
labels - are available in major cities through departmental stores,
for the most part. These stores offer greater variety, but the most
diverse range is still seen at sportswear stores. Traditionally, a few
strong Indian brands and manufacturers provided variety within
this category, until the previous decade. Foreign sportswear brands
created visibility through a strong distribution network, even into tier
-II and -III cities via EBOs, organised MBOs, departmental stores and
unorganised stores. Indian brands continue to be available mainly
through the unorganised route. Smaller local and regional players
have greater presence through unorganised stores, in regions closer to
manufacturing units.
Further, within the sleepwear category for women, the core sub-
products are chemise, payjama sets, short length and long robes,

and distributors can offer better services as well. Brands do conduct
regular distributor meets where they showcase the complete product
range and whence selections can be made and orders booked. Brands
also provide good distributor incentives like foreign trip packages,
electronic items, etc. Distributors remain motivated by these to walk
an extra mile and in return increase sales and profitability. Some
brands have their own warehouse and no distributors. They cater
directly to MBO s and LFS . This model is usually suitable for premium
tube dresses, nightgowns and nightshirts. Married women and single product range with small volumes. Here the margins are high as there
women staying with their families tend to wear more conservative are no intermediaries. Brands in this space also tend to have higher
nightwear such as top-pyjamas night suits, full length night gowns marketing budgets. Apart from trade promotions and meetings, they
(nighties), etc. Sleepwear constitutes a fairly significant part of usually have dedicated marketing plans and teams. Most brands
all lingerie outlets, with lower product width and depth compared use multiple formats for marketing and promotions. From celebrity
to intimate wear. In comparison for men, it is shorts, t-shirts, and endorsements to using print media and other mass media, all formats
pyjamas that form the core product range. In this category, consumers are employed in order to capture the young Indian consumers’
are not very brand-driven but are instead design-, style- and comfort- attention. Brands need to engage and build an association with
driven. consumers through a complete, 360-degree marketing strategy.
Indian and foreign brands, as well as private labels, are available in In both the menswear and womenswear segment, innerwear has
metros and mini metros through department stores and EBO s. Local, made its presence felt. The growing demand for innerwear has made
smaller players display a retail presence similar to that for activewear, consumers, and especially youth, spend on these products without
with product availability concentrated regionally. Departmental giving a second thought to its price. It is no longer treated as merely an
stores enjoy a good standing with customers; however, it is the local undergarment but is worn as a fashionable article of clothing that can
unorganised stores which are most popular for this category. Within be flaunted. This growth in demand has carved out a potential market
the men’s innerwear segment, there are limited players which cater for innerwear in India. As women’s innerwear is expected to grow
to all segments. Within the kidswear space, innerwear is primarily faster, brands should widen their share thereof. They also have to vary
unorganised and features strong regional players. Only some brands their product offerings and heighten the fashion quotient. Existing
have more than a few styles to offer for boys and girls. Although brands have the opportunity of expanding beyond just innerwear.
some brands offer teen’s innerwear (especially teen’s bras) there is Activewear, comfortwear and sleepwear are some natural extensions
again only limited product range. Local MBO s and the private labels and promising categories. A smart pricing strategy must be employed
at departmental stores are the main point-of-purchase for kid’s in order to attract consumers and boost brand preference. Also,
innerwear. products need to be made available for kids and teens as well, in order
Briefs and vests in packs of three or four with cartoon characters to introduce brand comfort and loyalty from a lower age. Further, for
tend to be highly popular among kids. On the supply side, most brands and retailers, there is an opportunity to identify and increase
national, foreign and regional brands have a similar distribution their focus across key consumption cities as well as a mix of formats.
model. Most of them have multiple distributors in each city who Thus, in order to be successful, brands must take the initiative to
handle individual, retailers and regions. Thus there is no stress about create a differentiating factor; only then can they establish a loyal
handling extremely large volumes or restricted distributor growth customer base in this promising but developing segment.


Presented By: Images Yearbook 2015

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PHOTO COURTESY: ENAMOR

248 IMAGES YEARBOOK 2015 presented by snapdeal.com Volume XII No. 1

IMAGES YEARBOOK 2015 presented by snapdeal.com Volume XII No. 1 249

PHOTO COURTESY: ENAMOR

The growth of innerwear category is primarily centered around

250 IMAGES YEARBOOK 2015 presented by snapdeal.com Volume XII No. 1

innerwear brands. Midsegment brands have started extending their

Women’s innerwear market Men’s innerwear market

252 IMAGES YEARBOOK 2015 presented by snapdeal.com Volume XII No. 1

254 IMAGES YEARBOOK 2015 presented by snapdeal.com Volume XII No. 1

256 IMAGES YEARBOOK 2015 presented by snapdeal.com Volume XII No. 1

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